What are junk bonds?
A) Junk bonds are those that yield low interest rates.
B) Junk bonds are those that never mature.
C) Junk bonds refer to bonds that have been resold many times.
D) Junk bonds are those issued by financially weak corporations.

Question

Quizplus · Accepted Answer

Junk bonds are those issued by financially weak corporations, which are below investment grade and carry a higher risk of default. They offer higher yields to compensate investors for this increased risk.

What Are Junk Bonds